Correlation Between Filinvest REIT and RFM Corp
Can any of the company-specific risk be diversified away by investing in both Filinvest REIT and RFM Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Filinvest REIT and RFM Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Filinvest REIT Corp and RFM Corp, you can compare the effects of market volatilities on Filinvest REIT and RFM Corp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Filinvest REIT with a short position of RFM Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Filinvest REIT and RFM Corp.
Diversification Opportunities for Filinvest REIT and RFM Corp
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Filinvest and RFM is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Filinvest REIT Corp and RFM Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RFM Corp and Filinvest REIT is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Filinvest REIT Corp are associated (or correlated) with RFM Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RFM Corp has no effect on the direction of Filinvest REIT i.e., Filinvest REIT and RFM Corp go up and down completely randomly.
Pair Corralation between Filinvest REIT and RFM Corp
Assuming the 90 days trading horizon Filinvest REIT Corp is expected to under-perform the RFM Corp. But the stock apears to be less risky and, when comparing its historical volatility, Filinvest REIT Corp is 1.15 times less risky than RFM Corp. The stock trades about -0.06 of its potential returns per unit of risk. The RFM Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 295.00 in RFM Corp on September 23, 2024 and sell it today you would earn a total of 94.00 from holding RFM Corp or generate 31.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 97.73% |
Values | Daily Returns |
Filinvest REIT Corp vs. RFM Corp
Performance |
Timeline |
Filinvest REIT Corp |
RFM Corp |
Filinvest REIT and RFM Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Filinvest REIT and RFM Corp
The main advantage of trading using opposite Filinvest REIT and RFM Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Filinvest REIT position performs unexpectedly, RFM Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in RFM Corp will offset losses from the drop in RFM Corp's long position.Filinvest REIT vs. AyalaLand REIT | Filinvest REIT vs. DDMP REIT | Filinvest REIT vs. Century Pacific Food | Filinvest REIT vs. RFM Corp |
RFM Corp vs. Century Pacific Food | RFM Corp vs. Axelum Resources Corp | RFM Corp vs. Swift Foods | RFM Corp vs. DDMP REIT |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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